Industry cheers passage of GST Bill

Indian industry has unanimously hailed the passage of Constitution Amendment Bill by the Upper House as the most-awaited tax reform and also the biggest reform in the past two decades. Commenting on the clearance of the Bill, Chairman, Hinduja Group of Companies, India, Ashok P. Hinduja, said that it will make India an attractive destination for foreign investments. As a matter of fact, manufacturing will get more competitive due to the emergence of a national market as against the present fragmented one. The low tax to GDP ratio of the country will go up, helping the government to adhere to fiscal discipline and keep the inflation in check. Besides improving productivity and transparency, he however, sought clarity on the continuance of existing exemptions, especially those linked to investment, made both at the Centre and State levels. Echoing his viewpoint, President, FICCI, Harshvardhan Neotia, said that it was 'heartening to see' that there is consensus emerging in passage of crucial GST bill, which is one of the most awaited reform measures by the industry. Similarly, President, Assocham, Sunil Kanoria said, this will mark a new beginning of a broad-based non-partisan political support for the critical economic reforms. While CEO, Kotak Securities, Kamlesh Rao said, this will send out a strong signal to the international markets that India is serious about reforms.

In fact, the Goods & Services Tax (GST) will result in the reduction of consumer durable industry from the tax burden, logistical, and transactional costs, which in turn will be beneficial for consumers. Managing Director, Whirlpool of India, Sunil D'Souza, said that, GST would help in removing economic distortions as well as building transparency which will drive consumption and fuel growth of the sector and the move will help the industry in optimizing warehousing and inventory carrying costs. The Consumer Electronics and Appliances Manufacturers Association (CEAMA) said, the common tax will help in reduction of production and logistics costs and help in 'ease of doing businesses'. Factually, it unites India into one economic entity, making it a common market place thus, making cost of production and competitiveness far more effective. GST will further contribute to economic growth by lifting the overall stature of local manufacturing by cutting down logistical and transactional costs, said President, CEAMA, Manish Sharma. Partner, Indirect Tax, EY, Suresh Nair, opined that if the government goes ahead with the rate of 17-18%, it will be positive for the consumer goods companies as it will mean reduction in taxes, which effectively should be beneficial for consumers.

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Industry cheers passage of GST Bill

NBM Media

NBM Media

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